When a Positive Externality Is Present in a Market, the Imposition

question 50

Multiple Choice

When a positive externality is present in a market, the imposition of a government subsidy ensures:

• A)a fair distribution of surplus.
• B)an efficient outcome.
• C)that those who enjoy the benefit receive the surplus.
• D)All of these are true.

---

Definitions:

Expert Power

The influence one has due to their skills, expertise or knowledge, often leading to enhanced credibility and respect from others.

Natural Leader

An individual who instinctively takes charge or influences others without formal authority, often due to inherent personality traits and charisma.

Inborn Talent

Natural skills or abilities that an individual possesses from birth.

Leadership Skills

Refers to the abilities and competencies that effective leaders demonstrate, including communication, decision-making, and strategic thinking.